Everybody’s heard about how the Baby Boomers are putting off retirement. That’s going to put a big burden on employers, right? Wrong.
Recent research from the Wharton School of Business at the University of Pennsylvania blows up three common myths about older workers. Here’s an excerpt from a recent article on Knowledge@Wharton.
Myth: Older workers cost more than younger ones and are less productive on the job.
Reality. Both concerns are untrue. While older workers may take longer to recover from injuries, studies show that they use fewer sick days on the whole than their younger counterparts, says management professor Peter Cappelli, who directs the Wharton Center for Human Resources. Health care costs are actually less for older workers, according to Cappelli, because most no longer have small children as dependents on their health care plans. Workers also become eligible for Medicare at age 65, which can further reduce an employer’s health care bills.
When it comes to job performance, older workers frequently outdo their younger colleagues, says Cappelli. Older workers have less absenteeism, less turnover, superior interpersonal skills and deal better with customers.
Myth. People at or near retirement age tend to lose interest in their jobs.
Reality. Studies find the opposite to be true. In a report titled Working in Retirement: A 21st Century Phenomenon, the Sloan Center on Aging & Work at Boston College reported that those who worked past retirement age became more, rather than less, engaged and satisfied with their jobs. And contrary to the belief that older workers resist learning new things, older workers ranked “job challenge and learning” as a top source of satisfaction.
Myth. Older workers in the workforce keep younger ones from getting jobs.
Reality. While it may be “a widespread belief that you have to get older people to retire to open up the career ladder and jobs for young people,” the opposite again is true, according to Wharton insurance and risk management professor Olivia S. Mitchell.
Policies in countries that encourage workers to retire early actually have a damaging impact on youth employment, Mitchell says. This is because the growing number of retirees forces governments to finance their rising pension costs by raising taxes, which causes employers to scale back hiring or pay workers less.
